New Overtime Pay Law Changes Encourage Outsourcing for Small Businesses

May

17

2016

Overtime Law Changes

Small business owners are losing their minds over the new overtime laws that just recently hit the scene. The U.S. Department of Labor created these new laws to ensure that workers receive fair compensation for special hours that they work. Business owners are now considering handing out their work to third-party companies. Here’s why:

Salary Levels May Have to Increase

The new overtime law changes could cause a change in salaries. Employers have to either pay overtime to certain employees or deal with the consequences of not doing such. Not doing such may result in the employer’s forced hand in raising the salaries of some employees. The Department of Labor made their new overtime laws so that white collar employees could benefit. The department wanted to ensure that the white collar employees received the maximum exemptions. The maximum exemptions went from $425 a week all the way to $970 a week with the new overtime laws. The overtime law changes will also add a mechanism that will conduct a wide variety of tasks like automatically updating the salary levels of the workers each year.

The Response from Employers

The employers responded to this new information about the overtime law changes by bombarding the department with comments. The department received more than 250 comments immediately after posting the new laws. Business owners were worried that they may lose a lot of money if they were forced to comply to the new laws right away. They felt that they would need additional time to prepare themselves before the laws took place. The modifications will not take effect immediately, but they may take effect in the month of July. Even if the new provisions do not hit in July, employers have to prepare themselves, as they will have to pay consequences if they do not comply when the laws officially hit.

The Benefits of Outsourcing

Hiring people from third-party companies to do specific jobs is beneficial in more ways than one. From a business expense standpoint, the business owner can save thousands of dollars. The third-party workers work for a set price, which is significantly lower than the wage price for the “white collar” workers. Money saving is a huge benefit to businesses in this aspect.

Another benefit of hiring third-party people is the increased level of customer service efforts that the company could see. Third-party workers work for a flat rate, and their motivation level seems to stay steady. Furthermore, the third-party team can dedicate itself to consumers who need help. The team can respond to telephone calls when no one else does and provide answers to important questions. By hiring third-party customer service reps, the company is ensuring that all its customers receive their fair share of attention. No call goes unanswered and no need goes unmet.

Hiring third-party teams cuts payroll costs down drastically, and it also spares the regular employees of overworking themselves. Employees can do their main jobs, work normal shifts and then go home to their families and loved ones. Employers can feel confident that they are complying with the new rules. Customers can have the constant dedication and attention that they need. The Department of Labor can be happy that people are complying with it provisions. Outsourcing seems as if it is a win-win situation for everyone who is involved with it. Businesses can contact a third-party company today and ask about their rates for the third-party workers.

Does Your Business Need Outsourcing?

If you own a small business, then this new law will grossly affect your operations. You will have to restructure your entire compensation system if you do not pay overtime to the people who are now eligible for it. It would be wise for you to schedule a consultation with an outsourcing company that can provide you with a team of competent experts who can work for you when you need to change your payroll structure. They will be eager to help your business in any way they can assist. Protect yourself and schedule an appointment today for a meeting. It will be the best business move you made in as long time.

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